ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: . BOARD DATE: 26 September 2019 DOCKET NUMBER: AR20170019747 APPLICANT REQUESTS: termination of his existing Survivor Benefit Plan (SBP). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: DD Form 149 (Application for Correction of Military Record under the Provisions of Title 10, U.S. Code, Section 1552). FACTS: 1. The applicant states: a. He does not remember being briefed at the Schofield Barracks Transition Center in January 2017 that the SBP could not be terminated at any time upon agreement between both the husband and wife. b. He and his wife are planning to purchase two different life insurance policies with the SBP funds, plus a very small additional out-of-pocket expense to cover both him and his wife. They realized after meeting with their life insurance agents that the total SBP benefit that would be paid to his spouse for 30 years equates to just over $91,000.00 versus immediate access to a $400,000.00 term life insurance policy. c. He does not remember being briefed that retired members had to wait 2 years before requesting termination of the SBP by both husband and wife. 2. He was born on XX July XXXX. 3. His records do not contain a copy of his marriage certificate. 4. He was issued a Notification of Eligibility for Retired Pay at Age 60 (20-Year letter), dated 4 August 2006, wherein he was advised that: This is to notify you that, having completed the required years of service, you will be eligible for retired pay upon application at age 60 in accordance with provisions of the Title 10, U.S. Code, Chapter 1223. Public Law 95-397, 30 September 1978, created the Reserve Components Survivor Benefit Plan (RCSBP), in which you are entitled to participate. RCSBP is your sole means of protecting your retired pay entitlement. NOTE: Public Law 106-398, 30 October 2000, requires that upon receipt of this Letter, a qualified Reserve Component member, who is married, will automatically be enrolled in the RCSBP under option C, Spouse and Child(ren) coverage based on Full Retired Pay, UNLESS different coverage is selected within 90 days of receipt of this letter. Notarized spousal concurrence is required in order to decline full and immediate coverage for annuitants. FAILURE TO MEET THIS REQUIREMENT WILL RESULT IN THE RETENTION OF FULL COVERAGE FOR YOUR SPOUSE AND CHILD(REN). 5. The memorandum from the Personnel Officer, State of Hawaii Office of the Adjutant General, dated 9 March 2007, subject: Non-Completion of RCSBP Election Certificate (DD Form 2656-5) within the 90 Day Suspense Period, notified the Commander, U.S. Army Human Resources Command, that the applicant was mailed a copy of his 20-year letter and failed to complete his DD Form 2626-5 within the 90-day period. As a result, the following options were designated in accordance with U.S. Army Reserve Personnel Center Pamphlet 135-2 [obsolete – title unknown] and the 2001 National Defense Authorization Act: * Type of Coverage – "Spouse Only" * Amount of Retired Pay – "Full" * Option – "C (Immediate Coverage)" 6. His records contain a DD Form 2656-2 (SBP Termination Request), dated 27 January 2019, which shows he requested termination of SBP, his spouse concurred, and their signatures were witnessed by a notary public on that date. 7. A letter from a military pay technician, Retired and Annuitant Pay, Defense Finance and Accounting Service, dated 28 February 2019, states they are unable to process his SBP request because they are missing a DD Form 2656-8 (Survivor Benefit Plan) necessary prior to termination of SBP. 8. An email from a financial management analyst, Retired and Annuitant Pay/External Communications, dated 15 March 2019, states no original election (DD Form 2626) was received. The only SBP related document received is the response letter requesting information from the retiree. SBP in his retired pay account is coded "Automatic Coverage" effective 1 February 2017, the date of his retirement. BOARD DISCUSSION: 1. After reviewing the application and all supporting documents, the Board found that relief is not warranted. The applicant was advised that he would have automatic spouse SBP coverage when he received his 20-year letter. Because he did not submit an election to decline coverage with the concurrence of his spouse at that time, his SBP coverage properly defaulted to immediate spouse coverage. For more than a decade, he and his spouse had the benefit of this coverage, and had he died, the spouse would have received an annuity. They both received the benefit of his SBP coverage, which justifies any costs he now pays for participating in that program. 2. The evidence indicates he is still within the 1-year period beginning on the second anniversary of the date on which his retired pay started to withdraw from SBP. If not yet resolved, this is a matter he must address with the Defense Finance and Accounting Service. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING :X :X :X DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. REFERENCES: Public Law 105-85, enacted 18 November 1997, established the option to terminate SBP participation. Retirees have a 1-year period beginning on the second anniversary of the date on which their retired pay started to withdraw from SBP. The spouse's concurrence is required. No premiums will be refunded to those who opt to disenroll. The effective date of termination is the first day of the first calendar month following the month in which the election is received by the Secretary concerned. ABCMR Record of Proceedings (cont) AR20170019747 4 1